Macau has established itself as one of the most resilient and booming economies in the world, and the continued investment in real estate, gaming, and trade has generated a population growth and an increase of available earnings that fuelled the demand for life and nonlife insurance products. In 2013 the Macau insurance industry posted a life insurance premium increase of 31.7% year on year, with the nonlife premium rising 12.7% during that period. Nevertheless, the Macau Insurers Association is quoted saying that there is still “much room for growth as Macau’s insurance penetration rate is far lower than the level in developed countries or even middle-income countries”.
The attractiveness of the insurance market has translated into new players entering the market in the different segments but it has also propped a positive increase of monitoring and supervision by the local insurance regulator.
MdME has a dedicated team that combines specialist product knowledge with a well-rounded view of the local sector. Our recent experience includes advising multinational insurance companies setting up their operations in Macau, structuring agency and TPA contractual frameworks, assisting reviewing and licensing of ILAS policies, compliance due diligences, etc. From a transactional perspective, MdME’s insurance experts work closely with its Corporate | M&A team having recently advised in the context of the acquisition of a controlling stake in a locally licensed insurer and in the restructuring of a multinational group with operations in Macau.